Global crude oil prices neared $100 a barrel on Wednesday as traders assessed the US-Iran peace talks’ prospects following President Donald Trump’s ceasefire extension. Brent crude futures reached $99.29 per barrel, up 0.82%, while US West Texas Intermediate rose 1.15% to $90.71. The previous session saw both benchmark contracts increase by about 3%.
On the Multi Commodity Exchange (MCX), crude oil dropped from its previous close, hitting an intraday low of Rs 8,382, down 0.65% or Rs 55 by around 10:30 am. Market sentiment remained cautious as Trump prolonged the ceasefire with Iran indefinitely for negotiation purposes, after initially setting a two-week period.
Additionally, the naval blockade persisted, with the Strait of Hormuz remaining restricted. Trump mentioned in a social media post that Iran was facing financial collapse, losing $500 million daily, and expressed Tehran’s interest in reopening the Strait of Hormuz. Shipping activity through this crucial route for nearly 20% of global energy supplies remained limited, with minimal vessel movement reported in the past 24 hours.
Iran hinted at potentially breaking the blockade, further escalating tensions. In the equities market, global performance varied. Domestically, equities traded lower, with both Sensex and Nifty declining around 1% each due to selling pressure in IT, banking, and auto stocks like Infosys, HCL Tech, Tech Mahindra, ICICI Bank, HDFC Bank, Eicher Motors, and M&M.
Globally, markets showed mixed trends. In Asia, the Nikkei rose by 0.61%, while the Hang Seng fell by 1% and the KOSPI traded slightly lower. In the US, Wall Street closed negatively, with the S&P 500 dropping by 0.63% to 7,064 and the Nasdaq ending 0.6% lower at 24,259.96.
